Financial Crime World

Financial Crime Investigation Process in Italy

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Italy has a long history of combating financial crimes, dating back to the 1930s when it first introduced anti-money laundering (AML) legislation. Over time, the country’s AML function has undergone significant developments shaped by internal and external factors.

Origins of Money Laundering

The concept of money laundering originated in the United States during the Prohibition era. Infamous figures like Al Capone used Italian laundries and pizzerias to clean and conceal illicit funds. It wasn’t until the 1930s that the crime was codified, and it has since become a major concern globally.

Italy’s AML Legislation

Italy’s AML legislation is comprised of various decrees and directives, including:

  • Legislative Decree No. 231 of 2007, which implemented the EU’s Third Anti-Money Laundering Directive.
  • Recent legislative developments have further strengthened Italy’s AML framework:
    • Legislative Decree No. 90 in 2017 implemented the EU’s Fourth Anti-Money Laundering Directive.
    • Legislative Decree No. 125 of 2020 transposed the EU’s Fifth Anti-Money Laundering Directive into Italian law.

Criminal Code and Money Laundering

Italy’s Criminal Code plays a crucial role in combating money laundering. Article 648 bis of the Penal Code punishes anyone who performs acts or deeds aimed at replacing money or valuables from such offenses with money or other valuables, with imprisonment ranging from four to ten years and a fine ranging from one million to twenty million euros.

Characteristics of Money Laundering in Italy

The characteristics of the offense of money laundering in Italy include:

  • Multiple offenses: It is a crime against property and the State.
  • Concrete danger: Hindering the reconstruction of the paper trail.
  • Predicate offense: Requiring the commission of a previous offense (different from this one, which is terrorism financing).
  • General intent of the agent: Necessitating that the agent intends and carries out the action of cleaning, concealment, and remission of the money.

Conclusion

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As Italy continues to evolve its AML framework, it remains essential for financial institutions and professionals to remain vigilant and report any suspicious transactions to the authorities. The country’s Financial Intelligence Unit (FIU) is responsible for analyzing and disseminating information on suspicious transactions, and it plays a crucial role in combating financial crimes.

In conclusion, Italy has made significant strides in combating financial crimes through its anti-money laundering legislation and criminal code. As the EU continues to refine its AML directives, Italy will need to adapt and strengthen its own framework to ensure the integrity of its financial system.